DAVY VIEW

With Q4 2023 results on February 1st, Stora Enso cautioned on weak 2024E (1) packaging and (2) wood product demand. Our updated Stora Enso €0.5bn 2024E operational EBIT sits 10% below Vara consensus. While welcoming Stora Enso’s new €80m cost saving programme, with elevated leverage and no quick fixes to dramatically improve profits or reduce leverage, we reaffirm our ‘Neutral’ view with a reduced €12.50 price target (PT).